Ethics Standards & Legal Compliance Flashcards
7 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethics Standards & Legal Compliance flashcards as text
A client asks a CGA to appraise their jewelry 'as high as possible' for a divorce settlement. The appraiser should:
Answer: Provide an objective appraisal based on market evidence regardless of the client's request
Appraisers must provide objective, impartial valuations regardless of the intended use or the client's desired outcome.
Under anti-money laundering (AML) regulations, a jeweler or appraiser in the US is required to file a Currency Transaction Report (CTR) when:
Answer: A cash transaction exceeds $10,000
Under the Bank Secrecy Act, businesses must file a CTR for cash transactions exceeding $10,000 to help detect money laundering.
What does 'competency' mean in the context of USPAP ethics for gemstone appraisers?
Answer: Possessing the knowledge and experience necessary to complete the appraisal credibly
USPAP requires appraisers to have or acquire the knowledge and experience necessary to complete each specific appraisal assignment competently.
Which of the following scenarios most likely constitutes insurance fraud involving a gemstone appraiser?
Answer: Knowingly overstating a gem's value to help a client collect a higher insurance payout
Knowingly inflating appraisal values to enable fraudulent insurance claims is a criminal act and a serious ethical violation.
The Gemological Institute of America (GIA) code of ethics primarily emphasizes:
Answer: Integrity, objectivity, and advancing the public's trust in the gem and jewelry industry
GIA's code of ethics centers on maintaining integrity, objectivity, and public trust in the gemological profession.
A CGA is approached by a client who wants an appraisal of a gemstone suspected to be of conflict origin. The appraiser's ethical duty is to:
Answer: Appraise the gem and note any relevant concerns or disclosures about origin in the report
Appraisers should complete the appraisal while documenting all relevant concerns, including potential origin issues, without making unfounded accusations.
Which type of appraisal value is most appropriate when an heir wants to fairly divide jewelry among beneficiaries in an estate?
Answer: Fair market value
Fair market value reflects what a willing buyer would pay a willing seller in an arm's-length transaction, making it the standard for estate division purposes.